As a result of the COVID-19 pandemic, many Port tenants are experiencing a decline in business or have been required to temporarily close. In support of businesses operating on and around San Diego Bay, the Port is closely monitoring the situation and is working with our tenants to help offset their financial impacts. We will continue to update this page and provide additional information/resources as it becomes available.
Safe Reopening for Businesses on San Diego Bay
The State of California has begun to allow certain businesses to reopen, with restrictions. In deciding whether to reopen your business, the Port understands that reviewing the relevant State and County orders and guidelines is no easy task and we greatly appreciate your efforts. Please find below frequently asked questions and answers we’re providing to you, our tenant partners. Our priority has been and remains the health and well-being of the public, its employees and families, our internal and external stakeholders, and our partners, which includes our tenants.
Frequently Asked Questions
Am I permitted to reopen my business?
Port of San Diego tenants are permitted to reopen if and when reopening your business is in compliance with the public health orders from the County of San Diego, the State of California’s Resilience Roadmap, and other relevant directives associated with Coronavirus Disease 2019 (COVID-19).
If you do not have a direct agreement with the Port, and are a subtenant, coordinate your reopening efforts with your landlord with whom you have a direct agreement.
Please note, the Port does not have jurisdiction of Mission Bay. The Port only oversees the land and water in and along San Diego Bay.
How do I know if I can reopen in compliance with relevant COVID-19 directives?
The Port is not the issuing authority and therefore cannot opine on the various COVID-19 directives and their applicability to specific businesses. However, the County of San Diego has a website dedicated to COVID-19, which contains links to County public health orders and reopening guidelines, and can be found at https://www.sandiegocounty.gov/content/sdc/hhsa/programs/phs/community_epidemiology/dc/2019-nCoV.html.
Additionally, the State of California’s COVID-19 website can be found at https://covid19.ca.gov/. This website includes additional resources and links to the State’s Resilience Roadmap, which outlines when certain businesses may reopen with restrictions.
In addition to approval from and compliance with all County of San Diego safe reopening guidelines, all other applicable charter license and permit requirements remain in effect.
Can I contact the County or the State for further guidance?
We understand businesses may email the County of San Diego at COVID19BusinessQuestions@sdcounty.ca.gov and contact the State of California via https://www.cdph.ca.gov/Pages/contact_us.aspx to seek guidance on reopening in accordance with the relevant directives. Please note, the Port cannot guarantee or represent that a response or advice will be received from either the County or the State.
Are the current directives and guidelines subject to change?
This is a rapidly evolving situation, and as a result, all State, County, and other directives are constantly subject to change, and any change may require businesses permitted to reopen to update their reopening plans. We encourage you to regularly check State and County websites for updates.
EXTENDED AND COMBINED RENT DEFERRAL PROGRAM
At its June 23, 2020 meeting, the Board of Port Commissioners (Board) adopted a rent deferral program that extended and combined the rent deferral programs previously approved by the Board on April 8, 2020 for Concession Tenants and May 19, 2020 for Fixed Rent Tenants with some modifications.
Frequently Asked Questions
Who is the rent deferral program being offered to?
The program is being offered to all Concession Tenants and Fixed Rent Tenants that have a direct agreement with the District, other than the San Diego International Airport and tenants of Seaport Village. A “Concession Tenant” is a tenant who reports their sales to the District each month and who must pay either (a) rent based on a percentage of their sales or (b) rent based on the greater of a percentage of their sales and the Minimum Annual Rent (MAR). A “Fixed Rent Tenant” is a tenant that pays a fixed amount of rent to the District each month, which may be in the form of improvement rent or predetermined monthly amount of rent, and also includes some of the Concession Tenants who may pay a hybrid of concession rent and improvement rent for the rental of District owned improvements.
What does the extended and combined program offer?
For qualifying Concession Tenants, defer MAR for up to six months for the rent paying months of March to August 2020, for rent due on April 20,
May 20, June 20, July 20, August 20, and September 20, 2020.
- Concession Tenants who participated in the Concession Tenant Rent Deferral Program would be allowed to defer rents for the additional rent paying months of June, July and August 2020.
- Concession Tenants who did not participate in the Concession Tenant Rent Deferral Program would receive an up to six month deferral of rent retroactive to March 2020. For March, April, and May rents already paid by a Concession Tenant, the Concession Tenant would receive a rent credit for those months that would be applied to payment of rent starting the first month after the end of the deferral.
- To demonstrate financial hardship under the Extended and Combined Rent Deferral Program, new applicants would need to show financial hardship in their operations for at least one month between March 2020 to August 2020.
- Applications for Concession Tenants must be received before August 31, 2020 to qualify for the deferral.
- The repayment period for qualifying Concession Tenants will also be extended by four months for a total of up to 10 months. Equal monthly installment repayments of the deferred MAR must commence by October 20, 2021 and conclude by July 20, 2022.
For qualifying Fixed Rent Tenants, defer fifty percent (50%) of monthly rent for any six consecutive months for the rent paying months of June to December 2020, for rent due on June 1, July 1, August 1, September 1, October 1, November 1, and December 1, 2020.
- Fixed Rent Tenants who participated in the Fixed Rent Tenant Rent Deferral Program would be allowed to defer rents for three additional consecutive months from those selected previously by tenant provided such new three months do not go beyond December 31, 2020. The additional months could be retroactive provided they are consecutive and not before June 1, 2020.
- Fixed Rent Tenants who did not participate in the Fixed Rent Tenant Rent Deferral Program, and paid rent for June, would receive a rent credit for the month of June and be able to defer a total of six consecutive months starting in June. The June rent credit would be applied to next payment of rent after the deferral period ends.
- Equal monthly installment repayments of the fixed rent and/or improvement rent must commence by September 1, 2021 and conclude by June 1, 2022.
- Applications for Fixed Rent Tenants must be received by December 31, 2020 to qualify for the deferral.
What if I was already accepted into and approved for one of the existing programs and don’t want to extend?
If you were accepted into and approved under an existing rent deferral program and do not wish to extend, you do not need to do anything. The terms of your countersigned letter agreement with the District remain in full force and effect.
How do I know if I qualify for the program?
To qualify for the program, you must meet ALL of the following minimum requirements:
(1) You must be considered a tenant in good standing pursuant to Board Policy No. 355 and remain a tenant in good standing throughout the program;
(2) Provide evidence of financial hardship satisfactory to Executive Director, or her designated representative, in accordance with such procedures as the Executive Director, or her designated representative, may require;
(3) Apply and provide proof of application for state and federal aid programs for which the tenant qualifies (unless the tenant does not qualify, in which case, a statement from the tenant certifying that they do not qualify for the available programs);
(4) Diligently pursue applications for state and federal aid, with acceptance into the rent deferral program contingent on tenant providing notice of determination;
(5) Concession tenants must comply with the Temporary Rent Deferral Program Rehire Policy (BPC Policy No. 779);
(6) If applicable, submit a subtenant plan detailing how tenant will extend the benefit of any rent deferral received to subtenants and implement such plan; and
(7) Acceptance into the rent deferral program would be contingent on tenant accepting state aid, federal aid, or both if offered.
Note: The Executive Director has delegated authority to the Director of Real Estate to implement the Extended and Combined Temporary Rent Deferral Program. In addition to the minimum requirements, the Director of Real Estate may request from tenant any additional information he deems necessary to determine whether the tenant qualifies for the Extended and Combined Temporary Rent Deferral Program. Failure to timely provide this information may be grounds for disqualification from the program.
The Director of Real Estate may also require more information from tenant prior to determining if the tenant does or does not qualify for the Extended and Combined Rent Deferral Program.
Am I required to extend the benefit of my rent deferral to my subtenants?
Qualifying tenants will be required to extend the benefit of any rent deferral received under the Extended and Combined Rent Deferral Program (with the modifications set forth below) in accordance with a Subtenant Plan submitted by tenant and approved by staff.
For Concession Tenants and Fixed Rent Tenants who are already participating in the existing rent deferral programs, and do not participate in the Extended and Combined Rent Deferral Program, the changes to the subtenant requirement in the Extended and Combined Rent Deferral Program would not apply. For Concession Tenants and Fixed Rent Tenants who are already participating in the existing rent deferral program and wish to apply for the Extended and Combined Rent Deferral Program, the modifications to the subtenant requirement would only apply to the new rent deferral months approved under the Extended and Combined Rent Deferral Program and would not be applicable to any rent deferral months previously approved under the existing rent deferral programs.
Under the Extended and Combined Rent Deferral Program, master tenant would be given the opportunity to determine how and if the rent deferral benefits should be passed down to its subtenants, including whether a subtenant would receive more of the benefit, less of the benefit, or none of the benefit, and in which of the rent deferred months such benefits would be received. However, master tenant is required to provide the Executive Director, or her designated representative, with an economic justification for such changes, and the Executive Director, or her designated representative, has the authority to determine compliance by the master tenant. As mentioned previously, this change to the subtenant requirement would only apply for new months granted to the tenants under the Extended and Combined Rent Deferral Program.
Who is considered a subtenant under the Extended and Combined Rent Deferral Program?
A subtenant is a business operating under a short or long-term sublease with the master tenant that was consented to, or deemed consented to, or that the District was not required to consent to and does not include telecommunications subtenants. Similar to the other change, this change to the subtenant requirement would only apply for new months granted to the tenants under the Extended and Combined Rent Deferral Program.
How do I apply for the program?
Tenants who have been accepted into and approved for the existing programs will not be required to resubmit a new application. Tenants will only be required to submit their Subtenant Plan and notify staff of their request for the additional benefits so an amendment to their existing agreement can be processed to modify the rent deferral period, repayment term, and subtenant requirement as modified by the Extended and Combined Rent Deferral Program, and for Concession Tenants only, add the requirement that the Concession Tenant comply with Board Policy No. 779.
If you have not been accepted into and approved for an existing program and are interested in applying for rent deferral, please submit a written request to your Asset Manager (see attached listing), which includes the necessary back-up identified in items (2), (3), and (6) of the qualifications. Upon receipt of an application, your Asset Manager will review your application for completeness and respond to you with any questions or requests for additional information. If your application is approved, you will be required to accept in writing the conditions of the deferral program before the deferral will be effective.
Applications for tenants that are not already participating in one of the existing rent deferral programs will be accepted through August 31, 2020 for Concession Tenants and December 31, 2020 for Fixed Rent Tenants. Tenants will not be admitted into the program after that time without future Board action.
What if I don’t know who my Asset Manager is?
Please see the attached file that includes a geographic listing of Asset Managers. You may also call the Real Estate Department’s main line at 619.686.6291 to be directed to your Asset Manager.
How long will it take to get a response to my application?
The Asset Manager will contact you within a few days of receipt of your application to let you know if your application is complete or requires additional information. After your Asset Manager has deemed your application complete (by receiving all of the necessary information), you should receive a response within 14 days.
Why do I have to pay any rent during the COVID-19 pandemic?
The rent deferral program is intended to cover immediate tenant needs. We will continue to assess the situation, recognizing that tenant rents are needed to support Port parks, beaches and other facilities.
What about special cases that aren’t covered by this program?
While many of the tenants in the District’s portfolio will likely recover from the economic shock associated with COVID-19 given the ability to defer six months of rent, there are some tenants that have been impacted to a greater extent and will require a structural reset of their agreement with the District to endure through the pandemic. Staff intends to work on a case by case basis with these tenants that may not otherwise remain economically viable through the COVID-19 crisis and will bring individual recommendations to the Board as needed.
Tenant Worker Rehire Policy
As part of the Port’s Rent Deferral Program for concession tenants, the Board of Port Commissioners directed Port staff to draft a Board policy requiring Port concession tenants accepting rent deferral to offer to rehire workers that have been laid off as a result of the COVID-19 pandemic when the tenants start increasing staff in the future. Click here to learn more.
Economic Stimulus Programs
For the convenience of our tenant partners, we’ve compiled a list of the various economic stimulus programs approved by regional, state and federal governments that are designed to address some of the specific challenges businesses are facing due to COVID-19. The list below includes forgivable loan programs, loan deferment programs, new loan opportunities, paid time off, and benefits services.
The list is not necessarily exhaustive, but is intended to provide tenants with helpful information about resources that may available. Additionally, businesses may find additional resources from the California Hotel and Lodging Association.
Paycheck Protection Program
|Small Business Administration (SBA)||No-fee loans, up to 100% may be forgivable if funds are used for rent and payroll. Funding amount up to average monthly payroll + 25%. 4% fixed APR. No payments for 6-12 months, 10-year term||Small businesses||$350B available federally guaranteed loans for employers who maintain their payroll during this emergency. Loans are available through June 30, 2020|
Economic Injury Disaster
|Small Business Administration (SBA)||Loan, with an emergency grant advance of $10,000. Funds are to be used for payroll and operating expenses. To access the advance, businesses first apply for an EIDL and then request the advance.||Small businesses and non-profits||$10B total, up to $2M per loan; $10,000 in emergency grant advance; Loan funding carries a 3.75% APR for 30 years|
Small Business Finance Center
|California iBank||Loans||Small Businesses located in California with 1-750 employees, Eligible Nonprofits||Loans up to $20M, max guarantee $1M for up to 7 years, interest rates are negotiable|
Debt Relief for Existing and
|Small Business Administration (SBA)||Debt Relief: allows businesses to extend the duration of existing and new small business loans||Small business: Funding is available to existing borrowers and to new borrowers that take out loans in the next 6 months||$17B total, including the ability to defer debt payments for existing loans|
Paid Leave for Government
|Small Business Administration (SBA)||Paid leave||Paid leave for employees working on small business contracts for the federal government|
Jump Start Loan Program
|California iBank||Loan: working capital, gap financing, disaster relief||Loans and loan guarantees via a partnership between the Small Business Finance Center and the Financial Development Corporation||Loans up to $20M, max guarantee $1M for up to 7 years, interest rates are negotiable|
California Capital Access Program
|California Treasurer||Loan loss reserve program. Funds must be repaid||Businesses in California||Loans via banks and lending institutions to small businesses that have difficulty finding financing|
Small Business Relief Fund
|City of San Diego - Economic Development Department||Small businesses in San Diego||$6.1M available in grants and loans, from $10,000 to $20,000|
|California Employment Development Department||Resources for employers and employees to access training, unemployment benefits and work sharing opportunities||Small businesses||No funding; this program is focused on providing resources to access training and benefits|
Resources for Business
|Small Business Administration (SBA)||Counseling services||Small business development centers, Women’s business centers and minority business development centers||$275M in funding to provide mentorship and guidance|
South County EDC's
|South County Economic Development Council||Loan||Restaurants in South County San Diego||
One-time $5,000 no-interest loan with repayment due on April 1, 2021. 50 Loans available
DISCLAIMER: This material was prepared and compiled by the Port as a helpful resource for tenants. The Port makes no representation as to its accuracy or applicability to any reader or user of this information. All individuals and entities seeking government or private assistance, whether identified here or otherwise, should solicit independent advice regarding any available services or assistance.